RAO Unified Energy System of Russia , or UES, is in talks with
French energy company Gaz de France to buy Russian power
generator OAO TGK-10, a person familiar with the situation
said Wednesday.
Both Gaz de France and TGK-10 declined to comment.
Analysts said news the French giant is interested in the
Russian power sector will help strengthen the sector's
creditworthiness.
Maxim Raskosnov, of Renaissance Capital in Moscow, said the
interest "is slightly positive for TGK-10's company's credit profile as
it reflects its attractiveness to major international energy
companies."
Raskosnov also considers TGK-10 to be one of the strongest
regional generators, after TGK-1 and Mosenegro, from a credit
standpoint, because of its high operational efficiency, driven by the
high and growing demand for electricity in the Tyumen and Chelyabinsk
regions.
TGK-10 is a regional utility serving the heartland of Russia's oil production in western Siberia and the southern Urals.
Raskosnov said TGK-10's bonds trade at a spread of 250 basis
points over the OFZ curve, which he considered an attractive level,
compared to 180 basis points during the summer.
But the interest of Western energy players in TGK-10 might
have broader benefits for the company as well, said Mikhail Nikitin, an
analyst with Raiffeisen Bank in Moscow.
"Strategic investor might also bring support to the company's investment plans," Nikitin wrote in a note.
Gaz de France said in October it was considering investing in
Russian power generation rather than gas, which it sees as more
challenging.
UES said in October it will sell the state's 59% stake in TGK-10 as part of the country's ongoing electricity sector reform.
Earlier this year, German utility E.On AG also expressed
interest in TGK-10. E.ON already owns a majority stake in Russian
wholesale power generator OAO OGK-4.